How do u treat general reserve when it is decreasing the the previous year to the current year in the cash flow statement?
Dear Student, When general reserve decreases, it is to be subtracted from the current year's profit in the operating activities for the preparation of Cash flow statement.!!
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Cash Flow from Operating Activities | |||||
Net Profit as per Statement of Profit and Loss (CY - PY) | |||||
less:Decrease in reserve |
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